Which model should Lifemaster produce? ( Hint: Use the allocation of fixed manufacturing overhead to
QUESTION
Product mix under production constraints
Lifemaster produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Lifemaster could use all its available machine hours to produce either model. The two models are processed through the same production departments. Data for both models is as follows:
Per Unit
Deluxe
Regular
Sale price
ANSWER:
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